What is a Jumbo Loan?
A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac.
The value of a jumbo mortgage varies by state—and even by county. The FHA sets the conforming loan limit size for different areas on an annual basis, though it changes infrequently.
In Colorado a Jumbo Loan is normally a loan amount greater than $575,000 in Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson Counties. Greater than $644,000 in Boulder County. Greater than $510,400 in Weld, El Paso, and Larimer Counties.
Underwriting requirements for Jumbo Loans are more stringent than conventional loans.